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Consider the following information for Evenflow Power Co., Debt: Common stock: 5,500 9 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling
Consider the following information for Evenflow Power Co., Debt: Common stock: 5,500 9 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 132,000 shares outstanding, selling for $65 per share; the beta is 1.08. 18,000 shares of 8.5 percent preferred stock outstanding, currently selling for $106 per share. 10 percent market risk premium and 8.5 percent risk-free rate. Preferred stock: Market: ume the company's tax rate 33 percent. Required: Find the WACC. (Do not round your intermediate calculations.) 13.09% 13.59% 13.19% 14.19% 13.37%
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